Financially-troubled trust should be dissolved

A Department of Health administrator has said South London Healthcare trust should be dissolved in order to address its financial issues.

Matthew Kershaw, a special administrator, recommended that the trust should be re-organised.

He said: "Without radical intervention now, the situation has no prospect of turning itself around."

The trust went into administration in July this year. It has accrued debts of over £150 million after it was created in 2009 as a merger of three hospital trusts.

South London Healthcare covers the Queen Elizabeth Hospital in Woolwich, Queen Mary's in Sidcup and the Princess Royal Hospital in Orpington.

The trust's debts have been predicted to increase to £240 million in four years.

Mr Kershaw's recommendations will be put out to consultation until December and will then be considered by the Health Secretary Jeremy Hunt.

Mr Hunt said it was important that care in south east London needed to be dealt with because the debt issue meant that "vital resources were being diverted from other parts of the NHS".

"In making my final decision next year my objective will be to ensure that services are delivered more efficiently and to a high standard for the people of south east London. Patients and taxpayers deserve this," he added.

Anna Dixon, director of policy at the King's Fund think tank, said: "While the recommendations will undoubtedly be controversial and tough to implement, radical redesign of health services is needed in many parts of the country."